Delta Regional Authority 

Performance and Accountability Report 

September 30, 2020 
Delta Regional Authority 

September 30, 2020 

Federal Co-Chairman States’ Co-Chair 

Christopher Caldwell Governor John Bel Edwards 

Alternate Federal Co-Chairman Alternate States’ Co-Chair

Vacant Ms. Leslie Durham 

STATE GOVERNORS, DESIGNEES, AND ALTERNATES 

Alabama Louisiana 

Governor Kay Ivey Governor John Bel Edwards 

Mr. Kenneth Boswell (Designee) Ms. Leslie Durham 

Ms. Crystal Talley (Alternate) (Designee & Alternate) 

Arkansas Mississippi 

Governor Asa Hutchinson Governor Tate Reeves 

Mr. Clint O’Neal Ms. Anne Hall Brashier 

(Designee & Alternate) (Designee & Alternate) 

Illinois Missouri 

Governor J.B. Pritzker Governor Mike Parsons 

Ms. Brandi Bradley Mr. Luke Holtschneider 

(Designee & Alternate) (Designee & Alternate) 

Kentucky Tennessee 

Governor Andy Beshear Governor Bill Lee 

Ms. Dennis Keene Ms. Brooxie Carlton (Designee) 

(Designee & Alternate) Mr. Brian Kelsey (Alternate) 
Delta Regional Authority Service Area 
Delta Regional Authority 

Performance and Accountability Report 

September 30, 2020 

Table of Contents 

Page(s)

Agency Head Letter 1-2

Section 1 - Management Discussion and Analysis 3-17

Section 2 - Performance Report 18-22

Section 3 - Financial Section

 Independent Auditor’s Report 23-26

 Basic Financial Statements

Balance Sheets 27

Statements of Net Cost 28

Statements of Changes in Net Position 29

Statements of Resources (Budgetary and Non-Budgetary) 30-31

Notes to Financial Statements 32-42

 Other Information

Combining Balance Sheets 43-44

Combining Statements of Net Cost 45-46

Combining Statements of Changes in Net Position 47-48

Combining Reconciliation of Net Cost of Operations (Proprietary) to Budget 49-50

Schedule of Expenditures 51

Schedule of Grants Made 52-53


Section 1 - Management’s Discussion and Analysis
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

3 

Introduction 

As management of Delta Regional Authority (DRA or the Authority), we offer readers of DRA’s 

Performance and Accountability Report this narrative overview and analysis of the financial activities of 

DRA for the fiscal year ended September 30, 2020. We encourage the readers to consider the 

information presented here in conjunction with information furnished within this report. 

The Delta Regional Authority is a federal-state partnership serving 252 counties and parishes in an eightstate region. Led by a Federal Co-Chairman and the Governors of each participating state, DRA is 

designed to remedy severe and chronic economic distress by stimulating economic development and 

fostering partnerships that have a positive impact on the region's economy. DRA helps economically 

distressed communities capitalize on other federal and state programs focused on basic infrastructure 

development, transportation improvements, business development and job training services. 

Congress mandated (7 U.S.C. §2009aa) that DRA shall provide funding for the following four categories: 

 Basic public infrastructure in distressed counties and isolated areas of distress; 

 Transportation infrastructure for the purpose of facilitating economic development in the region; 

 Business development, with emphasis on entrepreneurship; and 

 Job training or employment-related education, with emphasis on use of existing public 

educational institutions located in the region. 

Congressional stipulations include: 

 The Authority will allocate at least 75% of Authority funds for use in distressed counties; and 

 The Authority shall allocate at least 50% of any funds for transportation and basic public 

infrastructure projects. 

The following is a discussion and analysis of the operating results and financial position of DRA, created 

by the Delta Regional Authority Act of 2000. The Authority's reauthorization expired on October 1, 2018 

and was extended by the Agricultural Act of 2018 to 2022. 

As listed in the Management's Discussion and Analysis and throughout the Performance and 

Accountability Report, DRA continues to emphasize performance, accountability and sustainability 

within its programs. Please review this document in conjunction with the annual financial statements 

and accompanying notes. 

Program Highlights for Fiscal Year 2020 

DRA – through its available funding programs – invested $27,987,444 of its available funds into 99 

projects in its eight-state region. These investments combined with $52,011,267 in other federal, state 

and local funds – a ratio of 1.86 to 1 for a total project investment of $79,988,711. Additionally, DRA's 

investments include private investments totaling $439,743,795 – a ratio of 15.7 to 1. Ultimately, DRA 

funded projects leveraged $491,755,062 in other public and private investments for a total investment 

ratio of 17.6 to 1. With these investments, DRA’s FY 2020 funding programs are expected to help achieve 

the following results: 
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

4 

 Provide 73,260 families with access to improved water and sewer; 

 Train 9,431 individuals for a 21st century workforce; and 

 Create and retain 2,428 jobs. 

Fiscal Year 2020 Counties and Parishes 

Distressed counties are defined as those counties that are one percent higher than the national average 

for unemployment for the most recent 24-month period and/or 80% or less than the national per capita 

income. Non-distressed counties are those under one percent of the national average for unemployment 

and more than 80% of national per capita income. 

DRA’s enabling legislation requires the Authority to update its distressed and non-distressed county 

designation annually. The tabulation for Fiscal Year 2020 resulted in 231 distressed counties and parishes 

and 21 non-distressed counties (see list below). 

Arkansas Louisiana Mississippi Alabama - None

Arkansas Ascension Madison

Pulaski Cameron Rankin Kentucky - None

East Baton Rouge

Illinois East Feliciana Missouri

Hamilton Jefferson Cape Girardeau

White Lafourche

Williamson Orleans Tennessee

Plaquemines Fayette

St. Charles Madison

West Baton Rouge Shelby

Non-Distressed List as of September 30, 2020

Alabama Dallas Monroe Louisiana Iberia St. Helena

Barbour Escambia Perry Acadia Iberville St. James

Bullock Greene Pickens Allen Jackson St. John the Baptist

Butler Hale Russell Assumption Jefferson Davis St. Landry

Choctaw Lowndes Sumter Avoyelles La Salle St. Martin

Clarke Macon Washington Beauregard Lincoln St. Mary

Conecuh Marengo Wilcox Bienville Livingston Tangipahoa

Caldwell Madison Tensas

Distressed List as of September 30, 2020
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

5 

Arkansas Fulton Ouachita

 Louisiana

(continued) Grant St. Bernard

Ashley Grant Phillips Catahoula Morehouse Union

Baxter Greene Poinsett Claiborne Natchitoches Vermillion

Bradley Independence Prairie Concordia Ouachita Washington

Calhoun Izard Randolph De Soto Pointe Coupee Webster

Chicot Jackson Searcy East Carroll Rapides West Carroll

Clay Jefferson Sharp Evangeline Red River West Feliciana

Cleveland Lawrence St. Francis Franklin Richland Winn

Craighead Lee Stone

Crittenden Lincoln Union Mississippi Humphreys Sharkey

Cross Lonoke Van Buren Adams Issaquena Simpson

Dallas Marion White Amite Jasper Smith

Desha Mississippi Woodruff Attala Jefferson Sunflower

Drew Monroe Benton Jefferson Davis Tallahatchie

Bolivar Lafayette Tate

Illinois Jackson Pulaski Carroll Lawrence Tippah

Alexander Johnson Randolph Claiborne Leflore Tunica

Franklin Massac Saline Coahoma Lincoln Union

Gallatin Perry Union Copiah Marion Walthall

Hardin Pope Covington Marshall Warren

DeSoto Montgomery Washington

Kentucky Graves Marshall Franklin Panola Wilkinson

Ballard Henderson Muhlenberg Grenada Pike Yalobusha

Caldwell Hickman Todd Hinds Quitman Yazoo

Calloway Hopkins Trigg Holmes

Carlisle Livingston Union

Christian Lyon Webster Missouri Madison Scott

Crittenden McCracken Bollinger Mississippi Shannon

Fulton McLean Butler New Madrid Ste. Genevieve

Carter Oregon St. Francois

Tennessee Gibson Lake Crawford Ozark Stoddard

Benton Hardeman Lauderdale Dent Pemiscot Texas

Carroll Hardin McNairy Douglas Perry Washington

Chester Haywood Obion Dunklin Phelps Wayne

Crockett Henderson Tipton Howell Reynolds Wright

Decatur Henry Weakley Iron Ripley

Dyer

Distressed List as of September 30, 2020 (continued)
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

6 

Organizational Structure 

The DRA Board is comprised of Governors from the eight states in the DRA region along with the Federal 

member, Christopher Caldwell, who was appointed by President Trump as the Federal Co-Chairman in 

September 2017 and confirmed by the U.S. Senate in December 2017. The Governors annually appoint 

a States' Co-Chairman, and in FY 2020, Governor John Bell Edwards of Louisiana was elected to serve as 

the tenth States' Co-Chairman. The DRA statute requires the Board to hold an annual quorum meeting, 

which compels the attendance of a majority of the states' Governors. For all other DRA meetings, 

Governors may appoint a designee/alternate to serve in their absence. 

The relationship between the Federal Member and Governors is a partnership in which all board 

members share the fiduciary responsibility of the Authority. Moreover, the Board's responsibilities are: 

to establish and approve investments for economic development to the region; assess the state of the 

region; facilitate and recommend interstate cooperation among region members; develop model 

legislation; support and train local development districts; and encourage private investment and 

cooperate with state economic development programs within the region. Board decisions require 

affirmation from the Federal member and a majority of participating Governors. 

The Federal Co-Chairman maintains an office within the DRA office and at the end of FY 2020 was the 

only full-time federal employee. Additionally, the DRA office employs eleven non-federal employees who 

carry out the day-to-day operations within the following areas: Finance and Administration; Project 

Development and Management; Policy Programs and Federal Affairs; and Public Engagement and 

Communication. The DRA organizational chart is as follows:

Organizational Chart 
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

7 

Management of Delta Regional Authority 

DRA utilizes the General Services Administration (GSA) for assistance in the management of DRA’s 

economic development obligations, disbursements, and the financial reporting of its federallyappropriated dollars. Because of the Authority’s relatively small size, the use of GSA has been very costeffective. GSA also assists the Authority with compliance with many federal-mandated requirements. 

State administrative funds are held by banks located in the DRA Region and are accounted for by the 

Director of Finance and Administration. 

DRA completed its 18th year of compliance with the Accountability of Tax Dollars Act of 2002. DRA has 

consistently initiated additional controls and expanded compliance testing to ensure the financial 

integrity of the Authority. 

Financial Highlights 

The following is a summary of changes in assets, liabilities, revenues, expenditures and net position at 

September 30, 2020, as compared to the prior year: 

 Total assets increased $10,262,855 or 16% in 2020 compared to an increase of $5,146,661 or 

9% in 2019; 

 Total liabilities increased $674,706 or 9.2% in 2020 compared to a decrease of $18,248 or 

0.2% in 2019; 

 Total net program costs increased $744,326 or 3% in 2020 compared to a decrease of 

$459,462 or 2% in 2019; 

 Financing sources of operations increased $744,326 or 3% in 2020 compared to an decrease 

of $459,436 or 2% in 2019; and 

 Net position increased $9,588,149 or 17% in 2020 compared to an increase of $5,164,909 or 

10% in 2019. 

Overview of the Financial Statements 

The Management’s Discussion and Analysis introduces DRA’s principal statements. The principal 

statements include: (1) balance sheets, (2) statements of net cost, (3) statements of changes in net 

position, (4) statements of resources (budgetary and non-budgetary), and (5) notes to financial 

statements. DRA also includes in this report additional information to supplement the principal 

statements. 

Balance Sheet – The balance sheet is a summary of assets, liabilities and net position for each fiscal year. 

It includes assets in possession or managed by the entity exclusive of items subject to stewardship 

reporting (assets), amounts owed by the entity (liabilities), and amounts which comprise the difference 

(net position). 
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

8 

2020 2019 $ Change % Change 

Total assets $ 75,534,123 $ 65,271,268 $ 10,262,855 16%

Total liabilities 7,973,929 7,299,223 674,706 9.2%

Total net position 67,560,194 57,972,045 9,588,149 17%

Total liabilities & net 

position $ 75,534,123 $ 65,271,268 $ 10,262,855 16%

2019 2018 $ Change % Change 

Total assets $ 65,271,268 $ 60,124,607 $ 5,146,661 9%

Total liabilities 7,299,223 7,317,471 (18,248) -0.2%

Total net position 57,972,045 52,807,136 5,164,909 10%

Total liabilities & net 

position $ 65,271,268 $ 60,124,607 $ 5,146,661 9%

 As of September 30, 

 Summary Balance Sheet 

 As of September 30, 

The FY 2020 and 2019 increases in total assets were largely attributable to federal appropriations for 

economic development purposes. Total liabilities increased in FY 2020 due to normal trade policies 

during FY 2020. Net position increased in FY 2020 compared to FY 2019. An increase in net position 

indicates that DRA’s financial condition improved in FY 2020. 

Statements of Net Cost – The statements of net cost are designed to show separately the components 

of the net cost of the reporting entity’s operations for the period. The net cost of operations is the gross 

cost incurred by the reporting entity less any exchange revenue earned from its activities. The gross cost 

of a program consists of the full cost of the outputs produced by that program plus any non-production 

costs that can be assigned to the program. Non-production costs are costs linked to events other than 

the production of goods and services. The net cost of a program consists of gross cost less related 

exchange revenues. By disclosing the gross and net cost of the entity’s programs, the statements of net 

cost provide information that can be related to the outputs and outcomes of the programs and activities. 

2020 2019 $ Change % Change

Program Costs

Gross costs $ 24,632,062 $ 24,668,449 $ (36,387) 0%

Less: earned revenue (1,010,507) (1,791,220) 780,713 -44%

Total net program 

costs $ 23,621,555 $ 22,877,229 $ 744,326 3%

 Summary Statement of Net Costs 

 Years Ended September 30, 
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

9 

2019 2018 $ Change % Change

Program Costs

Gross costs $ 24,668,449 $ 25,049,217 $ (380,768) -2%

Less: earned revenue (1,791,220) (1,712,526) (78,694) 5%

Total net 

program costs $ 22,877,229 $ 23,336,691 $ (459,462) -2%

Summary Statement of Net Costs 

Years Ended September 30,

The FY 2020 increase in total net program costs is attributable to an increase in SEDAP project 

disbursements and increase in earned revenue.

Statements of Changes in Net Position – The statements of changes in net position report the change in 

net position during the reporting period. Net position is affected by changes to its two components: 

cumulative results of operations and unexpended appropriations. The statement format is designed to 

display both components of net position separately to enable the user to better understand the nature 

of changes to net position as a whole. 

2020 2019 $ Change % Change

Unexpended appropriations

Beginning balance $ 57,972,045 $ 52,807,136 $ 5,164,909 10%

Total financing sources 9,588,149 5,164,909 4,423,240 86%

Total unexpended appropriations 67,560,194 $ $ 57,972,045 $ 9,588,149 17%

Cumulative results of operations

Beginning balance $ - $ - $ - 0%

Total financing sources 23,621,555 22,877,229 744,326 3%

Net cost of operations 23,621,555 22,877,229 744,326 3%

Net change - - - 0%

Cummulative results of operations - - - 0%

Net position $ 67,560,194 $ 57,972,045 $ 9,588,149 17%

Years Ended September 30, 
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

10

2019 2018 $ Change % Change

Unexpended appropriations

Beginning balance $ 52,807,136 $ 46,744,351 $ 6,062,785 13%

Total financing sources 5,164,909 6,062,785 (897,876) -15%

Total unexpended appropriations 57,972,045 $ $ 52,807,136 $ 5,164,909 10%

Cumulative results of operations

Beginning balance $ - $ 26 $ -100% (26)

Total financing sources 22,877,229 23,336,665 (459,436) -2%

Cost of operations 22,877,229 23,336,691 (459,462) -2%

Net change - (26) -100% 26

Cumulative results of operations - - - 0%

Net position $ 57,972,045 $ 52,807,136 $ 5,164,909 10%

Summary Statement of Changes in Net Position 

Years Ended September 30, 

The increase in total financing sources is related to an increase in disbursements of SEDAP funds 

expended in FY 2020 and FY 2019. 

Statements of Resources (Budgetary and Non-Budgetary) – The statements of resources (budgetary 

and non-budgetary) and related disclosures provide information about how budgetary resources were 

made available, as well as their status at the end of the year. It is the only financial statement 

predominantly derived from an entity’s budgetary general ledger in accordance with budgetary 

accounting rules, which are incorporated into generally accepted accounting principles (GAAP) in the 

United States of America for the federal government. 

2020 2019 $ Change % Change

Resources (budgetary & nonbudgetary) $ 49,590,991 $ 39,224,020 $ 10,366,971 26%

Status of budgetary resources $ 46,854,974 $ 37,079,675 $ 9,775,299 26%

Net outlays, end of year $ 19,525,515 $ 20,165,595 $ (640,080) -3%

Unpaid obligated balance, net 63,944,986 $ $ 50,046,550 $ 13,898,436 28%

Years Ended September 30,

Summary Statement of Resources (Budgetary & Non-Budgetary)
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

11

2019 2018 $ Change % Change

Resources (budgetary & nonbudgetary) $ 39,224,020 $ 39,718,713 $ (494,693) -1%

Status of budgetary resources $ 37,079,675 $ 36,669,857 $ 409,818 1%

Net outlays, end of year $ 20,165,595 $ 13,993,546 $ 6,172,049 44%

Unpaid obligated balance, net 50,046,550 $ $ 51,662,246 $ (1,615,696) -3%

Years Ended September 30,

Summary Statement of Resources (Budgetary & Non-Budgetary)

Notes to Financial Statements – The notes to financial statements are an integral part of the financial 

statements and provide more detailed data. 

Limitations of the Financial Statements 

The principal financial statements have been prepared to report the financial position and results of 

operations of the entity, pursuant to the requirements of 31 U.S.C. 3515(b). While the statements have 

been prepared from the books and records of the entity in accordance with GAAP for federal entities 

and the formats prescribed by the President’s Office of Management and Budget, the statements are, in 

addition to the financial reports, used to monitor and control budgetary resources, which are prepared 

from the same books and records. 

Audit Opinion: Unmodified

Restatement: No

Material Weakness(es)

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

Total Material Weaknesses - - - - -

Year Ended September 30, 2020

Summary of Financial Statement Audit

Grants Oversight & New Efficiency (GONE) Act 

The objective of the Grants Oversight and New Efficiency (GONE) Act is to identify and close out expired 

grants. The covered grants are those within an agency’s cash payment management system that have 

been expired for two or more years and have not been closed out. DRA reviewed its close-out population 

of federal grants and cooperative agreements and found instances where either a grant award or 

cooperative agreement with the period of performance ending on or prior to September 30, 2018 had 

not been closed out. Delays in grant and cooperative agreement closeout, and challenges to be 

addressed pursuant to the GONE Act follow the table below. 
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

12

Category No. of 2-3 Years No. of >3-5 Years

Grants and cooperative agreements 

with undisbursed balances 13 $3,342,491 1 $194,000

Summary of Grants Oversight & New Efficiency (GONE) Act

As of September 30, 2020

Challenges

Delays in Grant and Cooperative Agreement Award Closeout - As noted in DRA's enabling legislation, 

"Congress finds that certain States and local communities of the region, including local development 

districts, may be unable to take maximum advantage of Federal grant programs for which the States and 

communities are eligible because: (1) the States or communities lack the economic resources to provide 

the required matching share; or (2) there are insufficient funds available under the applicable Federal 

law authorizing the Federal grant program to meet pressing needs of the region." These limitations are 

often the reason DRA funds are needed as first dollars in on some of these grants. These limitations 

speak to other intrinsic limitations some of these communities experience, that being, other resources 

to ensure the projects are completed on time and on budget. 

Changes in the Fund Obligation Process - DRA has obligated funds over the course of three 

administrations. The first administration obligated with a signed grant agreement; the second 

administration obligated with a board approved (voted on) project. Typically grant agreements were 

signed and returned soon after, but there have been occasions where the signed grant agreement took 

much longer to return. This issue is exacerbated by an extremely small administrative staff with little 

continuity over DRA's 18 years of existence. 

Planned Corrective Actions 

DRA will address the staffing situation to divide administrative tasks proportionally. DRA will be looking 

to purchase an accounting system which will accommodate financial accounting for both DRA 

administrative costs and grant funding. There are still a great number of outstanding grants and 

cooperative agreements, but more could be done to claw back unused and underutilized funding. DRA 

will improve training with the Local Development Districts to expedite the identification of these 

projects, allowing DRA to start the claw back process sooner. Likewise, DRA will need to further educate 

our board members on the risks associated with certain projects and how to identify projects that are 

capable of moving faster. Lastly, the demographics of the Delta region must be taken into consideration 

and the inherent challenges that exist here. Some leeway must be given to these communities that 

struggle to obtain federal funds. 
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

13

The Anti-Deficiency Act 

Public Law 31 USC S 1341, Limitations on Expending and Obligating Amounts, 31 USC S 1342, Limitation 

on Voluntary Services, and 31 USC S 1517, Prohibited Obligations and Expenditures, and 31 USC S 1501, 

Documentary Evidence Requirement for Government Obligations make up the core of this Act. 

31 USC, Section 1341, Limitations on Expending and Obligating Amounts 

An officer or employee of the U.S. Government or of the District of Columbia government may not--- 

 make or authorize an expenditure or obligation exceeding an amount available in an 

appropriation or fund for the expenditure or obligation; 

 involve either government in a contract or obligation for the payment of money before an 

appropriation is made unless authorized by law; 

31 USC, Section 1342, Limitation on Voluntary Services 

An officer or employee of the U.S. Government or of the District of Columbia government may not accept 

voluntary services for either government or employ personal services exceeding that authorized by law 

except for emergencies involving the safety of human life or the protection of property. 

31 USC, Section 1517, Prohibited Obligations and Expenditures 

An officer or employee of the U.S. Government or of the District of Columbia government may not make 

or authorize an expenditure or obligation exceeding--- 

 an apportionment; or 

 the amount permitted by regulations prescribed under section 1514(a) of this title; 

31 USC, Section 1501, Documentary Evidence Requirement for Government Obligations 

An amount shall be recorded as an obligation of the U.S. Government only when supported by 

documentary evidence of--- 

 A binding agreement 

 A loan agreement 

 Order required by law 

 A grant or subsidy 

 A liability from litigation 

 Employment of persons 

 Public utilities services 

 Other

Violations of the Anti-Deficiency Act 

Making or authorizing an obligation or expenditure:

 In excess of an appropriation 

 Before an appropriation is made 
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

14

 In excess of an apportionment 

 In excess of agency regulations (e.g., allotment) 

 Accepting voluntary services (except in an emergency); employing personal services 

Violations of these rules will subject the officer or employee to: 

 Appropriate administrative discipline 

 Suspension from duty without pay 

 Removal from office 

Intentional violation of the Anti-Deficiency Act will subject the officer or employee to: 

 Fines up to $5,000 

 Imprisonment up to 2 years 

 Or both 

Reporting a Violation 

A violation report has to be prepared by the head of the offending agency and sent to: 

 The President (through OMB) 

 The Speaker of the House 

 The President of the Senate 

 The Comptroller General 

The violation report must contain: 

 Date, amount, account involved in violation 

 The name and position of the person responsible 

 Discipline imposed 

 Statement about the adequacy of administrative control system 

 Statement of actions taken to prevent it from ever happening again. 

For the year ended September 30, 2020, Delta Regional Authority complied with the Anti-Deficiency Act. 

The Prompt Payment Act (PPA) 

The Prompt Payment Act was enacted to ensure the federal government makes timely payments. Bills 

are to be paid within 30 days after receipt and acceptance of material and/or services, or after receipt 

of a proper invoice whichever is later. When payments are not made timely, interest should be 

automatically paid. The basic requirements of the PPA for government finance offices are to: 

 Date stamp all incoming invoices. 

 Make payments no earlier than 23 days and no later than 30 days from the invoice date. 

 Take discounts only within the terms offered. 

 Pay interest automatically when payment is late. 
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

15

 Report performance based on statistical sampling to the Office of Management and Budget. 

Procedures and Guidelines DRA uses to comply with the Prompt Payment Act 

Mandatory IMP AC (government credit card program) for all purchases less than $2,500 may eliminate 

hours of collection time on smaller dollar invoices. Under the current VISA card program, vendors are 

paid usually within 2-3 days of shipment of the order. The merchant bank then collects from the 

government. The government purchase order is e-mailed to the vendor, input into their order processing 

system and then invoiced electronically to the payment office. When information is not re-keyed into 

systems, the chances for errors in the order and billing processes are reduced if not eliminated. Delta 

Regional Authority complied, in all relevant respects, with the Prompt Payment Act. 

Data Accountability and Transparency Act (DATA Act) of 2014 31 USC S6101, PL 113-101

The purpose of the DATA Act is to establish government-wide financial data standards and increase the 

availability, accuracy, and usefulness of Federal spending information. The Act's vision was to provide 

reliable, timely, secure, and consumable financial management data for the purpose of promoting 

transparency, facilitating better decision making, and improving operational efficiency. 

Delta Regional Authority complied, with all material respects, with the DATA ACT and reported 

information quarterly, as required during the fiscal year. 

Fraud Reduction and Data Analytics Act (FRDAA) of 2015 

Under the Fraud Reduction and Data Analytics Act (FRDAA) of 2015, agencies are required to report on 

efforts to reduce fraud. Standards require agencies to identify fraud risk factors and programs with 

increased susceptibility for fraud. The report must include information on the agency’s progress in 

implementing: 

 Financial and administrative controls established pursuant to the act, 

 The fraud risk principle in the Standards for Internal Control in the Government, and OMB Circular 

A-123, Management’s Responsibility for Internal Control, with respect to leading practices for 

managing fraud risk, 

 Progress in identifying risks and vulnerabilities to fraud, including with respect to payroll, 

beneficiary payments, grants, large contracts, purchase and travel cards, and 

 Progress on establishing strategies, procedures, and other steps to curb fraud. 
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

16

Control 

Environment Risk Assessment 

Control 

Activities

Information & 

Communication

Monitoring 

Activities

Demonstrates 

commitment to 

integrity and ethical 

values.

Define objectives 

and risk 

tolerances.

Designs control 

activities.

Uses relevant, 

quality 

information.

Performs ongoing 

monitoring 

activities.

Exercises oversight 

responsibilities.

Identifies, 

analyzes and 

responds to risk.

Selects and 

develops 

general system 

controls.

Communicates 

internally.

Evaluates issues 

and remediates 

deficiencies.

Establishes 

structure, authority 

and responsibility.

Assess fraud risk. Deploys & 

implements 

control 

activities.

Communicates 

externally.

Demonstrates 

commitment to 

competence.

Identifies, 

analyzes and 

responds to 

change.

Framework of Internal Control

Year Ended September 30, 2020

DRA maintains an annual Financial Internal Control and Risk Management Plan that identifies, through 

quantitative and qualitative analysis, transactional areas that are susceptible to inaccuracies and/or 

fraud. The plan contains specific process areas that are tested throughout the fiscal year to ensure the 

process results are accurate and reasonable. Government-issued travel cards have been identified as a 

program with a high risk for fraud. 

The following controls are in place to prevent/mitigate fraud within the government travel card program: 

 Reduced employee-held travel cards to $2,500, 

 A government travel card SOP is published defining the roles and rules of the program. The 

handbook is reviewed and updated as needed, and 

 Reduce the number of employees eligible for a government travel card. 

The following administrative controls are in place to detect potential fraud within the travel card 

program: 

 The Senior Accountant reviews purchase card holders’ statements and matches supporting 

receipts to billed charges monthly and communicates with cardholders regarding unmatched or 

suspicious charges. When cardholders deny unmatched or suspicious charges, the Accounting 

Supervisor refers such charges to the Director of Finance & Administration for review and 

disposition, 

 The Director of Finance & Administration rejects payments for unknown or suspicious charges 

and requests the bank to investigate those purchases deemed suspect, 
Delta Regional Authority 

Management’s Discussion and Analysis

Year Ended September 30, 2020 

17

 After an investigation, the bank either provides copies of receipts to prove the employee initiated 

the charge or issues credit to the cardholder. 

Other areas reviewed for the annual Financial Internal Control and Risk Management Plan include:

 Payroll, and how fraud could be perpetuated through the time management system. The 

Accounting/HR Supervisor prepares the payroll for bi-weekly submission to the Director of 

Finance/Administration, who reviews the submission for changes of personnel or salary from the 

prior month and budget and compares names to authorized personnel and salaries to 

authorized/approved salaries. 

 Contracts over $25,000, and how procurement procedures can be manipulated through fraud. 

Below are additional strategies, procedures, and other steps employed by the agency to curb fraud: 

 Prevent – educate employees on the care and use of a travel card, 

 Prevent – conduct detailed fraud risk assessments to focus management attention, 

 Deter/Detect – Promote effective reporting tools for suspicious or inappropriate activities 

(whistleblower hotline), 

 Anti-Fraud Policy/Training – communicate a policy and train employees to recognize suspicious 

or inappropriate activities, 

 Deter/Detect – Response to fraud allegations of how it will be investigated/resolved. 

DRA’s senior management believes that this policy sends a clear message that senior management is 

committed to preventing and detecting fraud committed against the organization. 

Contacting DRA’s Financial Management

This financial report is designed to fulfill the obligations of DRA as it relates to the Accountability for Tax 

Dollars Act of 2002. The report details the financial position of DRA as of September 30, 2020 and 2019, 

and demonstrates DRA’s accountability for all funds and appropriations received. 

If you have any questions about this report or need additional information, please contact the Delta 

Regional Authority via telephone by calling (662) 624-8600 or mail by directing inquiries to the Director 

of Finance & Administration, Delta Regional Authority, 236 Sharkey Ave, Suite 400, Clarksdale, MS 38614. 

Other Contact/Reports 

Internet Home Page http://dra.gov

Fraud/Whistleblower http://dra.gov/accountability/promoting-a-transparent-government/#fraud

Agency Financial Report http://dra.gov/accountability/promoting-a-transparent-government/

Strategic Plan http://dra.gov/funding-programs/strategic-economic-development-plans-by-state/
Section 2 – Performance Report
Delta Regional Authority 

Performance Report 

Year Ended September 30, 2020 

18

Overview 

The Government Performance and Results Act of 1993 ("GPRA") requires all federal agencies to submit 

a report to Congress on actual program results at the end of each Fiscal Year along with its audited 

financial statements outlined in the Office of Management and Budget (OMB) Circular No. A-136, 

Financial Audit Manual. This report includes a summary of results on the following DRA programs and 

initiatives: 

Project Development and Management 

 States’ Economic Development Assistance Program (SEDAP)

o Community Infrastructure Fund (CIF) 

 Local Development Districts (LDD) Training/Administration 

Policy Programs 

 Delta Workforce Program (DWP) 

 Delta Leadership Institute (DLI) 

o Delta Leadership Network (DLN) 

 Delta Doctors 

Project Development and Management 

States’ Economic Development Assistance Program (SEDAP) 

The States’ Economic Development Assistance Program is DRA’s primary investment program. Since 

2002, DRA has leveraged more than $229 million of its own appropriations with more than $4.1 billion 

in other public and private sector dollars. SEDAP investments are subject to Federal Priority Eligibility 

Criteria and must help improve the following in Delta communities: 

 Basic Public Infrastructure 

 Transportation Infrastructure 

 Workforce Training and Education 

 Business Development and Entrepreneurship 

At least 50% of SEDAP funds must be invested in basic public infrastructure and transportation 

infrastructure. 

At least 75% of SEDAP funds must be invested in economically distressed counties and parishes. 

Community Infrastructure Fund (CIF) 

The Community Infrastructure Fund helps strengthen the economic viability of Delta communities. In FY 

2020, DRA invested more than $12 million into projects addressing flood control, basic public 
Delta Regional Authority 

Performance Report 

Year Ended September 30, 2020 

19

infrastructure, and local transportation improvements that enhance local and regional economies 

throughout the Delta region. 

In FY 2020, DRA - through its available funding programs - invested $27,987,444 of its total appropriation 

into 94 projects in its eight-state region. This investment leveraged $52,011,267 in other federal, state 

and local funds - a ratio of 1.9 to 1 for a total project investment of $79,998,711. Additionally, DRA's 

investments attracted private investments totaling $439,743,795 - a ratio of 15.7 to 1. Ultimately, DRA 

has leveraged $491,755,062 in other public and private investments for a total investment ratio of 17.6 

to 1. 

With these investments, the 2020 DRA funding programs are expected to help achieve the following 

results: 

 Provide 73,260 families with access to improved water and sewer; 

 Train and prepare 9,471 individuals for the workforce; and 

 Create and retain 10,344 jobs. 

GOAL 2. Strengthened Infrastructure: Strengthen the Delta’s physical, digital, and capital connections 

to the global economy. 

 Aligned with DRA’s Regional Development Plan III: Goal 2 – Strengthened Infrastructure, SEDAP, 

CIF and PWEAA collectively direct public and private investments into basic public infrastructure 

and transportation projects that can facilitate business expansion, company relocation, and job 

growth in Delta communities. 

Local Development Districts (LDD) Training/Administration 

Per DRA's statue, local development districts (LDDs) are the Authority's front-line project developers and 

managers. The LDDs within the DRA footprint provide technical assistance, application support and 

review, and other services to DRA and the entities in their districts wishing to apply for DRA funding. 

LDDs help identify effective and impactful economic development projects for consideration for DRA 

investment. All projects, regardless of the funding source, are developed in coordination with the 

appropriate LDD. LDD staff review and certify that each project is legitimate and meets the parameters 

of DRA programs. 

Based on guidance from the LDD Advisory Board, LDDs who are out of compliance with certification 

requirements are ineligible to submit applications for DRA funding. These compliance requirements have 

helped ensure consistent improvements in the quality of applications over time. Guidance is given 

annually during the LDD training workshop and provided publicly in DRA's administrative program 

manual. 
Delta Regional Authority 

Performance Report 

Year Ended September 30, 2020 

20

These actions help ensure DRA stakeholders are receiving the most up to date technical assistance from 

their LDD when applying for DRA funding. 

GOAL 3. Increased Community Capacity: Facilitate local capacity building within Delta communities, 

organizations, businesses, and individuals. 

 Aligned with DRA’s Regional Development Plan III: Goal 3 – Increased Community Capacity, DRA’s 

annual LDD Training/Administration provides executive directors and project development staff 

with best practices, innovative strategies and resources to boost the economic development 

potential of their regional footprints. 

Programs and Initiatives 

Delta Workforce Program 

In June 2017, President Donald J. Trump signed Executive Order (EO) 13801, “Expanding Apprenticeships 

in America,” to promote affordable education and rewarding jobs for American workers through the 

reformation of America’s education systems and workforce development programs. In response to the 

President’s call to action, DRA launched the Delta Workforce Program, an initiative designed to build 

long-term community capacity and increase economic competitiveness across the Mississippi River Delta 

region and Alabama Black Belt. 

In partnership with the U.S. Department of Labor (DOL) Employment and Training Administration (ETA) 

and the Appalachian Regional Commission (ARC), approximately $29.2 million in grants are available 

under the Workforce Opportunity for Rural Communities (WORC) initiative (administered by DOL ETA) 

to support workforce training and education in rural communities across the Delta and Appalachian 

regions. To complement this federal partnership, DRA facilitates pre-award technical assistance 

workshops and webinars, makes available $1.5 million in grants under the Delta Workforce Grant 

Program, and offers post-award technical assistance to grantees.

The Delta Workforce Program prioritizes investing in communities and regions that have been negatively 

impacted by economic transition and need assistance to help build their workforce pipelines and 

strengthen their economies.

Investment priorities include:

 Supporting industry-led workforce training;

 Building collaborative talent pipelines;

 Supporting or enhancing industry clusters; and

 Accelerating local or regional economic development.
Delta Regional Authority 

Performance Report 

Year Ended September 30, 2020 

21

In FY 2020, DRA invested $1,500,000 into 12 projects across six of the eight DRA states, including: 

Applicant State Grant Award

Alabama 4th Judicial Circuit Community Correction Program AL $150,000

Black River Technical College AR $100,000

Little Rock Regional Chamber AR $37,896

UAM College of Technology-Crossett AR $150,000

Todd County Fiscal Court KY $149,964

Jericho Road Episcopal Housing Initiative LA $150,000

Research Park Corporation LA $150,000

Missouri Rural Water Association MO $124,440

Missouri State University MO $125,300

Carroll County School District TN $132,695

Northwest Tennessee Workforce Board, Inc. TN $150,000

TCAT Covington TN $79,705

TOTAL $1,500,000

GOAL 1. Improved Workforce Competitiveness: Advance the productivity and economic 

competitiveness of the Delta workforce. 

Aligned with DRA’s Regional Development Plan III: Goal 1 – Improved Workforce Competitiveness, the 

Delta Workforce Program makes grants and provides technical assistance to organizations focusing on 

improving workforce training and industry-specific skills in urban and rural communities alike. 

Investments are targeted in areas seeking to bolster their economic development efforts by 

strengthening the talent pipelines for existing businesses and high-growth industry clusters. 

Delta Leadership Institute (DLI) 

Founded in 2005, the Delta Leadership Institute (DLI) supports local economic development by building 

leadership skills and fostering collaboration among established community leaders in the public, private, 

and nonprofit sectors to improve the economic and social opportunities of the Delta region and its 

people. DLI relies on the administrative, programming, and curricular support from a consortium of four 

university partners: The University of Alabama, Arkansas State University, the University of Louisiana at 

Monroe, and the University of Arkansas Sam M. Walton School of Business.

The year-long DLI Executive Academy is designed to provide professional leadership development and 

policy training in the issues most challenging to Delta communities. The Executive Academy held six

sessions in FY 2020 that focused on transportation and infrastructure, public health and education, small 

business and entrepreneurship, culture and tourism, and public policy and innovative partnerships. The 

Delta Leadership Institute graduated 30 fellows from its fifteenth class in September 2020. 
Delta Regional Authority 

Performance Report 

Year Ended September 30, 2020 

22

Delta Leadership Network (DLN) 

The Delta Leadership Network comprises the alumni of the Executive Academy and is tasked with 

maintaining these relationships among regional leaders so as to foster regional collaboration, resource 

sharing, and continued education to help these leaders address the Delta’s most pressing issues. Now 

more than 530 community leaders make up the DLN, through which they continue their engagement 

with the Delta Leadership Institute at state meetings, an annual Delta Leadership Network conference, 

and events with new Executive Academy classes.

GOAL 3. Increased Community Capacity: Facilitate local capacity building within Delta communities, 

organizations, businesses, and individuals. 

 Aligned with DRA’s Regional Development Plan III: Goal 3 – Increased Community Capacity, DLI 

and DLN supports a wide array of leaders across the region through the Executive Academy, DLN 

conference, and continuing education programs. 

Delta Doctors 

In an effort to increase the number of doctors serving Delta residents, the Delta Regional Authority began 

implementing the Delta Doctors program in 2003. The program allows foreign physicians who are trained 

in the US to work in medically underserved areas for three years by providing those physicians with J-1 

Visa Waivers. Most choose to stay far longer once they develop a patient base. Those in the Delta Doctors 

program do not take jobs away from U.S.-born physicians. Instead, they provide services in areas where 

there would otherwise be a shortage of physicians. 

The impact of Delta Doctors in the region is realized both by access to quality affordable healthcare and 

the economic impact the doctors make on the community in which they reside and practice. On average, 

each doctor participating in the program is estimated to create 5 full-time jobs within their clinics and 

offices, and an additional 3.4 full and part-time jobs within the communities where they work. 

In FY 2020, DRA submitted 202 J-1 Visa Waiver recommendations to the U.S. Department of State for 

physician placement in medically underserved areas/health professional shortage areas throughout the 

252 counties and parishes making up the DRA service area. 

GOAL 1. Improved Workforce Competitiveness: Advance the productivity and economic 

competitiveness of the Delta workforce. 

 Aligned with DRA’s Regional Development Plan III: Goal 1 – Improved Workforce 

Competitiveness, Delta Doctors improves the health and wellness of the Delta’s workforce to 

elevate productivity and competitiveness of the region’s employers by providing Americantrained, foreign physicians to health professional shortage areas (HPSA) and medically 

underserved areas (MUA). 
Section 3 – Financial Section 
23

Independent Auditor’s Report

Federal and State Co-Chairs 

Members of the Board Delta Regional Authority 

Clarksdale, Mississippi 

In our audits of the fiscal years 2020 and 2019 financial statements of Delta Regional Authority (the 

Authority), we found 

 the Authority’s financial statements as of and for the fiscal years ended September 30, 2020 and 2019, 

are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting 

principles; 

 no material weaknesses in internal control over financial reporting based on the limited procedures 

we performed; and 

 no reportable noncompliance for fiscal year 2020 with provisions of applicable laws, regulations, 

contracts, and grant agreements we tested. 

The following sections discuss in more detail (1) our report on the financial statements, required 

supplementary information (RSI) and other information included with the financial statements; (2) our 

report on internal control over financial reporting; and (3) our report on compliance with laws, 

regulations, contracts, and grant agreements. 

Report on the Financial Statements 

In accordance with auditing standards generally accepted in the United States of America and the

standards applicable to financial audits contained in Government Auditing Standards, issued by the

Comptroller General of the United States, and Office of Management and Budget (OMB) Bulletin No. 19-

03, Audit Requirements for Federal Financial Statements, we have audited the Authority’s balance sheets 

as of September 30, 2020; the related statements of net cost, changes in net position, and resources 

(budgetary and non-budgetary) for the fiscal years then ended; and the related notes to the financial 

statements. 

We conducted our audit in accordance with U.S. generally accepted government auditing standards. We 

believe that the audit evidence we obtained is sufficient and appropriate to provide a basis of our audit 

opinion. 

Management’s Responsibility

Authority management is responsible for (1) the preparation and fair presentation of these financial 

statements in accordance with U.S. generally accepted accounting principles; (2) preparing, measuring, 

and presenting the RSI in accordance with U.S. generally accepted accounting principles; (3) preparing 

and presenting other information included in documents containing the audited financial statements and 

auditor’s report, and ensuring the consistency of that information with the audited financial statements 

and the RSI; and (4) maintaining effective internal control over financial reporting, including the design, 

implementation, and maintenance of internal control relevant to the preparation and fair presentation 

of financial statements that are free from material misstatement, whether due to fraud or error. 

Robert K. VanDevender, CPA

Lance Mohamed, CPA 

Stribling W. Hargett, CPA

W. Lee Mattox, CPA

William A. Adams, CPA

Gay G. Moss, CPA

Fred T. Neely, CPA 

(1897 – 1967) 

Billy Joe Killebrew, CPA

 (1942 – 2010) 

Ralph F. Neely, CPA

 (1927 – )
24

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. U.S. generally 

accepted government auditing standards require that we plan and perform the audit to obtain 

reasonable assurance about whether the financial statements are free from material misstatement. We 

are also responsible for applying certain limited procedures to RSI and other information included with 

the financial statements. 

An audit of financial statements involves performing procedures to obtain audit evidence about the 

amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s 

judgment, including the auditor’s assessment of the risks of material misstatement of the financial 

statements, whether due to fraud or error. In making those risk assessments, the auditor considers 

internal control relevant to the entity’s preparation and fair presentation of the financial statements in 

order to design audit procedures that are appropriate in the circumstances, but not for the purpose of 

expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no 

such opinion. An audit of financial statements also involves evaluating the appropriateness of the 

accounting policies used and the reasonableness of significant accounting estimates made by 

management, as well as evaluating the overall presentation of the financial statements. Our audit also 

included performing such other procedures as we considered necessary in the circumstances. 

Opinion on Financial Statements 

In our opinion, the Authority’s financial statements present fairly, in all material respects, the Authority’s 

financial position as of September 30, 2020 and 2019, and its net cost of operations, changes in net 

position, and resources (budgetary and non-budgetary) for the fiscal years then ended in accordance with 

U.S. generally accepted accounting principles. 

Other Matters 

Required Supplementary Information 

U.S. generally accepted accounting principles issued by the Federal Accounting Standards Advisory Board 

(FASAB) require that the RSI be presented to supplement the financial statements. Although the RSI is 

not a part of the financial statements, FASAB considers this information to be an essential part of financial 

reporting for placing the financial statements in appropriate operational, economic, or historical context. 

We have applied certain limited procedures to the RSI in accordance with U.S. generally accepted 

government auditing standards, which consisted of inquiries of management about the methods of 

preparing the RSI and comparing the information for consistency with management’s responses to the 

auditor’s inquiries, the financial statements, and other knowledge we obtained during the audit of the 

financial statements, in order to report omissions or material departures from FASAB guidelines, if any, 

identified by these limited procedures. We did not audit and we do not express an opinion or provide 

any assurance on the RSI because the limited procedures we applied do not provide sufficient evidence 

to express an opinion or provide any assurance. 

Other Information 

The Authority’s other information contains a wide range of information, some of which is not directly 

related to the financial statements. This information is presented for purposes of additional analysis and 

is not a required part of the financial statements or the RSI. We read the other information included with 

the financial statements in order to identify material inconsistencies, if any, with the audited financial 

statements. Our audit was conducted for the purpose of forming an opinion on the Authority’s financial 

statements. We did not audit and do not express an opinion or provide any assurance on the other 

information. 
25

Report on Internal Control over Financial Reporting 

In connection with our audit of the Authority’s basic financial statements, we considered the Authority’s 

internal control over financial reporting, consistent with our auditor’s responsibility discussed below. We 

performed our procedures related to the Authority’s internal control over financial reporting in 

accordance with U.S. generally accepted auditing standards. 

Management’s Responsibility

The Authority’s management is responsible for maintaining effective internal control over financial 

reporting, including the design, implementation, and maintenance of internal control relevant to the 

preparation and fair presentation of financial statements that are free from material misstatement, 

whether due to fraud or error. 

Auditor’s Responsibility

In planning and performing our audit of the Authority’s financial statements as of and for the year ended 

September 30, 2020, in accordance with the U.S. generally accepted government auditing standards, we 

considered the Authority’s internal control over financial reporting as a basis for designing audit 

procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the 

financial statements, but not for the purpose of expressing an opinion on the effectiveness of the 

Authority’s internal control over financial reporting. Accordingly, we do not express an opinion on the 

effectiveness of the Authority’s internal control over financial reporting. We are required to report all 

deficiencies that are considered to be significant deficiencies or material weaknesses. We did not consider 

all internal controls relevant to operating objectives, such as those controls relevant to preparing 

performance information and ensuring efficient operations. 

Definition and Inherent Limitations of Internal Control over Financial Reporting 

An entity’s internal control over financial reporting is a process effected by those charged with 

governance, management, and other personnel, the objectives of which are to provide reasonable 

assurance that (1) transactions are properly recorded, processed, and summarized to permit the 

preparation of financial statements in accordance with U.S. generally accepted accounting principles, and 

assets are safeguarded against loss from unauthorized acquisition, use, or disposition, and (2) transactions 

are executed in accordance with provisions of applicable laws, including those governing the use of budget 

authority, regulations, contracts, and grant agreements, noncompliance with which could have a material 

effect on the financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect 

and correct, misstatements due to fraud or error. 

Results of Our Consideration of Internal Control over Financial Reporting 

Our consideration of internal control was for the limited purpose described above, and was not designed 

to identify all deficiencies in internal control that might be material weaknesses and significant deficiencies 

or to express an opinion on the effectiveness of the Authority’s internal control over financial reporting. 

Given these limitations, during our audit, we did not identify any deficiencies in internal control over 

financial reporting that we considered to be material weaknesses. However, material weaknesses may 

exist that have not been identified. 
26

Intended Purpose of Report on Internal Control over Financial Reporting 

The purpose of this report is solely to describe the scope of our consideration of the Authority’s internal 

control over financial reporting and the results of our procedures, and not to provide an opinion on the 

effectiveness of the Authority’s internal control over financial reporting. This report is an integral part of 

an audit performed in accordance with U.S. generally accepted government auditing standards in 

considering internal control over financial reporting. Accordingly, this report on internal control over 

financial reporting is not suitable for any other purpose. 

Report on Compliance with Laws, Regulations, Contract, and Grant Agreements 

In connection with our audit of the Authority’s financial statements, we tested compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements consistent with our auditor’s 

responsibility discussed below. We caution that noncompliance may occur and not be detected by these 

tests. We performed our tests of compliance in accordance with U.S. generally accepted government 

auditing standards. 

Management’s Responsibility

The Authority’s management is responsible for complying with laws, regulations, contracts, and grant 

agreements applicable to the Authority. 

Auditor’s Responsibility

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, contracts, 

and grant agreements applicable to the Authority that have a direct effect on the determination of 

material amounts and disclosures in the Authority’s financial statements, and perform certain other 

limited procedures. Accordingly, we did not test compliance with all laws, regulations, contracts, and 

grant agreements applicable to the Authority. 

Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements 

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant 

agreements disclosed no instances of noncompliance for fiscal year 2020 that would be reportable under 

U.S. generally accepted government auditing standards. However, the objective of our tests was not to 

provide an opinion on compliance with laws, regulations, contracts, and grant agreements applicable to 

the Authority. Accordingly, we do not express such an opinion. 

Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements 

The purpose of this report is solely to describe the scope of our testing of compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements, and the results of that testing, 

and not to provide an opinion on compliance. This report is an integral part of an audit performed in 

accordance with U.S. generally accepted government auditing standards in considering compliance. 

Accordingly, this report on compliance with laws, regulations, contracts, and grant agreements is not 

suitable for any other purpose. 

Fred T. Neely & Company, PLLC 

Fred T. Neely & Company, PLLC 

Greenwood, Mississippi 

November 15, 2020
Delta Regional Authority

Balance Sheets

September 30, 2020 and 2019

2020 2019

Assets

Intragovernmental

Fund balance with Treasury $ 71,300,877 $ 61,307,533

Total intragovernmental 71,300,877 61,307,533

Cash 3,984,555 3,567,795

Accounts receivable, net 172,348 278,034

General property and equipment, net 76,343 117,906

Total assets $ 75,534,123 $ 65,271,268

Liabilities

Intragovernmental

Employer contributions and payroll taxes payable $ 2,681 $ 2,040

Liability for advances and prepayments 5,512,312 5,118,919

Total intragovernmental 5,514,993 5,120,959

Accounts payable 1,900,052 1,613,049

Grants and other payables 429,635 483,478

Accrued funded payroll and leave 129,249 81,737

Total liabilities 7,973,929 7,299,223

Net position 

Unexpended appropriations - all other funds 

(consolidated totals) 67,560,194 57,972,045

Cumulative results of operations - all other funds 

(consolidated totals) - -

Total net position 67,560,194 57,972,045

Total liabilities and net position $ 75,534,123 $ 65,271,268

24

The accompanying notes are an integral part of these financial statements 27
Delta Regional Authority

Statements of Net Cost

Years Ended September 30, 2020 and 2019

2020 2019

Program cost

Council of Inspectors General on Integrity and Efficiency

Fund balance with Treasury $ 24,632,062 $ 24,668,449

Less: earned revenue (1,010,507) (1,791,220)

Total net program costs 23,621,555 22,877,229

Net cost of operations $ 23,621,555 $ 22,877,229

The accompanying notes are an integral part of these financial statements 28
Delta Regional Authority

Statements of Changes in Net Position

Years Ended September 30, 2020 and 2019

2019 2018

Unexpended appropriations

Beginning balance $ 57,972,045 $ 52,807,136

Budgetary financing sources

Appropriations received 30,000,000 25,000,000

Appropriations used (20,877,850) (20,723,851)

Other financing sources (uses)

Cost of operations absorbed by member states and others 2,031,792 2,090,867

Cost of operations absorbed by Rural Community Assistance 

Program (RCAP) 1,170,224 942,237

Disbursements of funds provided by member states and others (1,530,745) (1,209,116)

Disbursements of Rural Community Assistance Program (RCAP) 

funds (1,205,272) (935,228)

Total financings sources (uses) 9,588,149 5,164,909

Total unexpended appropriations $ 67,560,194 $ 57,972,045

Cumulative results of operations

Beginning balance $ - $ -

Budgetary financing sources

Appropriations used 20,877,850 20,723,851

Other financing sources

Imputed financing from costs absorbed by others 7,688 9,034

Disbursements of RCAP funds 1,205,272 935,228

Disbursements of funds provided by member states and others 1,530,745 1,209,116

Total financing sources 23,621,555 22,877,229

Net cost of operations 23,621,555 22,877,229

Net change - -

Cumulative results of operations - -

Net position $ 67,560,194 $ 57,972,045

The accompanying notes are an integral part of these financial statements 29
Federal 

State and 

Other RCAP Combined

Budgetary

NonBudgetaryNonBudgetaryBudgetary and 

Non-Budgetary

Budgetary resources 

Unobligated balance from prior year budget 

authority, net (discretionary and mandatory) 11,417,441 $ 3,428,886 $ 4,348 $ 14,850,675

Appropriations (discretionary and mandatory) 30,000,000 - - 30,000,000

Spending authority from offsetting 

collections (discretionary and mandatory) 1,538,300 2,031,792 1,170,224 4,740,316

Total resources $ 42,955,741 $ 5,460,678 $ 1,174,572 $ 49,590,991

Status of budgetary resources

New obligations and upward adjustments $ 35,294,849 $ - $ - $ 35,294,849

Unobligated balances/unexpended funds, 

end of year

Apportioned, unexpired accounts 9,158,148 - - 9,158,148

Unapportioned, unexpired accounts (1,497,256) - - (1,497,256)

Unexpired unobligated balance, end of year 7,660,892 - - 7,660,892

Unexpended funds - 3,929,933 (30,700) 3,899,233

Unobligated/Unexpended balance, end of year 7,660,892 3,929,933 (30,700) 11,560,125

Total budgetary resources $ 42,955,741 $ 3,929,933 $ (30,700) $ 46,854,974

Change in obligated balances 

(memorandum) (non-add) entries) 

Unpaid obligated balance, net, 

beginning of year $ 49,891,092 $ 54,018 $ 101,440 $ 50,046,550

New obligations and upward adjustments 35,294,849 1,530,745 1,205,272 38,030,866

Unavailable 134,401 - - 134,401

Gross outlays (21,544,956) (1,465,508) (1,255,367) (24,265,831)

Recoveries of prior year unpaid obligations (1,000) - - (1,000)

Unpaid obligated balance, net, end of year

Undelivered orders 61,646,781 - - 61,646,781

Accounts payable 2,127,605 119,255 51,345 2,298,205

Total obligated balance, net, end of year $ 63,774,386 $ 119,255 $ 51,345 $ 63,944,986

Outlays, net 

Outlays, net (total) (discretionary and 

mandatory) $ 20,006,656 $ (566,284) $ 85,143 $ 19,525,515

Agency outlays, net (discretionary and 

mandatory) $ 20,006,656 $ (566,284) $ 85,143 $ 19,525,515

Statement of Resources (Budgetary and Non-Budgetary)

Delta Regional Authority

Years Ended September 30, 2020 

The accompanying notes are an integral part of these financial statements 30
Federal 

State and 

Other RCAP Combined

Budgetary

NonBudgetary Non-BudgetaryBudgetary and 

Non-Budgetary

Budgetary resources

Unobligated balance from prior year budget 

authority, net (discretionary and mandatory) 5,856,845 $ 2,547,135 $ (2,661) $ 8,401,319

Appropriations (discretionary/mandatory) 25,000,000 - - 25,000,000

Spending authority from offsetting collections 

(discretionary and mandatory) 2,789,597 2,090,867 942,237 5,822,701

Total resources $ 33,646,442 $ 4,638,002 $ 939,576 $ 39,224,020

Status of budgetary resources

New obligations and upward adjustments $ 22,230,000 $ - $ - $ 22,230,000

Unobligated balances/unexpended funds, 

end of year

Apportioned, unexpired accounts 11,416,441 - - 11,416,441

Unapportioned, unexpired accounts - - - -

Unexpired unobligated balance, end of year 11,416,441 - - 11,416,441

Unexpended funds - 3,428,886 4,348 3,433,234

Unobligated/Unexpended balance, end of 

year 11,416,441 3,428,886 4,348 14,849,675

Total budgetary resources $ 33,646,441 $ 3,428,886 $ 4,348 $ 37,079,675

Change in obligated balances (memorandum) 

(non-add) entries) 

Unpaid obligated balance, net, 

beginning of year $ 51,376,391 $ 90,637 $ 195,218 $ 51,662,246

New obligations and upward adjustments 22,230,000 1,209,116 935,228 24,374,344

Other - - - -

Gross outlays (23,713,555) (1,245,735) (1,029,006) (25,988,296)

Recoveries of prior year unpaid obligations (1,744) - - (1,744)

Unpaid obligated balance, net, end of year

Undelivered orders 48,241,093 - - 48,241,093

Accounts payable 1,649,999 54,018 101,440 1,805,457

Total obligated balance, net, end of year $ 49,891,092 $ 54,018 $ 101,440 $ 50,046,550

Outlays, net 

Outlays, net (total) (discretionary and 

mandatory) $ 20,923,958 $ (845,132) $ 86,769 $ 20,165,595

Agency outlays, net (discretionary and 

mandatory) $ 20,923,958 $ (845,132) $ 86,769 $ 20,165,595

Delta Regional Authority

Statement of Resources (Budgetary and Non-Budgetary)

Years Ended September 30, 2019 

The accompanying notes are an integral part of these financial statements 31
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2020 and 2019 

32

Note 1 – Summary of Significant Accounting Principles 

A. Reporting Entity 

The Delta Regional Authority (DRA or the Authority) is a federal-state partnership serving a 252 

county/parish area in an eight-state region. Led by a federal co-chairman and the governors of each 

participating state, DRA is designed to remedy severe and chronic economic distress by stimulating 

economic development and fostering partnerships that will have a positive impact on the region’s 

economy. DRA helps economically distressed communities take advantage of other federal and state 

programs focused on basic infrastructure development and transportation improvements, business 

development and job training services. 

The Authority is a party to allocation transfers with other federal agencies as a transferring (parent)

entity. Allocation transfers are legal delegations by one department of its authority to obligate budget 

authority and outlay funds to another department. A separate fund account (allocation account) is 

created in the U.S. Department of Treasury (Treasury) as a subset of the parent fund account for tracking

and reporting purposes. All allocation transfers of balances are credited to this account, and subsequent 

obligations and outlays incurred by the child entity are charged to this allocation account as they 

execute the delegated activity on behalf of the parent entity. Generally, all financial activity related 

to these allocation transfers (e.g., budget authority, obligations, outlays) is reported in the financial 

statements of the parent entity from which the underlying legislative authority, appropriations and 

budget apportionments are derived. The Authority allocates funds, as the parent, to the United States 

Department of Agriculture (USDA) and the U.S. Economic Development Administration (EDA). 

B. Basis of Presentation 

These basic statements have been prepared from the accounting records of DRA in accordance with 

accounting principles generally accepted in the United States of America (GAAP) and the form and 

content for entity financial statements specified by the President’s Office of Management and Budget 

(OMB) in OMB Circular No. A-136, Financial Reporting Requirements, as amended. GAAP, for federal 

entities, are standards prescribed by the Federal Accounting Standards Advisory Board (FASAB), which 

has been designated as the official accounting standards setting body for the federal government by 

the American Institute of Certified Public Accountants (AICPA). 

OMB Circular No. A-136 requires agencies to prepare basic statements, which include a balance sheet, 

statement of net cost, statement of changes in net position and statement of resources (budgetary 

and non-budgetary). The balance sheets present, as of September 30, 2020 and 2019, amounts of

future economic benefits owned or managed by DRA (assets), amounts owed by DRA (liabilities), 

and amounts which comprise the difference (net position). The statements of net cost report the full 

cost of the program, both direct and indirect costs of the output, and the costs of identifiable supporting 

services provided by other segments within DRA and other reporting entities. The statements of

changes in net position reflect financing sources available to DRA, the cost of its operations and the

net change in its financial position. The statements of resources (budgetary and non-budgetary) report 

an agency’s budgetary activity. 
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2020 and 2019 

33

C. Basis of Accounting 

Transactions are recorded on both the accrual and budgetary basis. Under the accrual basis of 

accounting, revenues are recognized when earned, and expenses are recognized when a liability is 

incurred, without regard to receipt or payment of cash. Budgetary accounting facilitates compliance 

with legal constraints on, and control of, the use of federal funds. The accompanying balance sheets, 

statements of net cost and statements of changes in net position have been prepared on an accrual 

basis. The statements of resources (budgetary and non-budgetary) have been prepared in accordance 

with budgetary accounting rules. 

D. Management of Financial Records

Federal appropriations are managed for DRA by the General Services Administration (GSA). Using the 

government-wide standard general ledger system (SGL), accounting transactions are initiated at DRA

and ultimately entered into the accounting records by GSA. These transactions are designated in the 

accompanying financial statements as “Federal.” 

DRA invoices and receives funds from the various member states to be used to pay 

administrative costs. This process meets the requirement of originating legislation which stipulates 

that “IN GENERAL - Administrative expenses of the Authority (except for the expenses of the federal 

co-chairperson, including expenses of the alternate and staff of the federal co-chairperson, which 

shall be paid solely by the federal government) shall be paid (A) by the federal government, in an

amount equal to 50% of the administrative expenses; and (B) by the states in the region participating 

in the Authority, in an amount equal to 50% of the administrative expenses.” The funds received from 

the states are maintained in a local bank account, and transactions are initiated and managed by DRA 

staff. These transactions are designated in the accompanying financial statements as “State and Other.”

E. Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles 

requires management to make estimates and assumptions that affect the reported amount of assets 

and liabilities and disclosure of contingent assets and liabilities at the date of the financial 

statements and the reported amounts of revenues, expenses and other changes in net position during 

the reporting period. Actual results could differ from those estimates. 

F. Revenues and Other Financing Sources 

DRA is a federal/state partnership and receives appropriations. Other financing sources for DRA consist 

of imputed financing sources which are costs financed by other federal entities on behalf of DRA, as 

required by Statement of Federal Financial Accounting Standard (SFFAS) No. 5, Accounting for Liabilities 

of the Federal Government. DRA also had a reimbursable agreement with the Economic Development 

Authority (EDA) during fiscal year 2018, 2019 and 2020, and the Department of Labor (DOL) in fiscal year 

2019 and 2020. 
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2020 and 2019 

34

G. Cash

At September 30, 2020 and 2019, cash consisted of deposit accounts with various financial institutions 

and all accounts were fully insured or otherwise collateralized. 

H. General Property and Equipment 

Property and equipment is stated at cost, less accumulated depreciation. DRA capitalizes property and 

equipment with an acquisition cost of $5,000 or more and a useful life exceeding two years. 

Depreciation is charged to expense using the straight-line method over the estimated useful life of five 

years for equipment. Leasehold improvements are amortized over the estimated period of occupancy 

or the life of the improvement, whichever is less. Expenditures for repairs and maintenance are charged 

to operating expense as incurred. 

I. Compensated Absences 

The Authority’s policies permit employees to accumulate annual and sick leave benefits that may be 

realized as paid time off. Expense and the related liability are recognized as annual leave benefits are 

earned. Sick leave benefits expected to be realized as paid time off are recognized as expense when the 

time off occurs, and no liability is accrued for such benefits employees have earned but not yet realized. 

The maximum accrual of annual leave is 480 hours, and there is no maximum accumulation of sick leave. 

Compensated absence liabilities for annual leave are computed using the regular pay and termination 

pay rates in effect at the balance sheet date, plus an additional amount for compensation-related 

payments such as Social Security, Medicare taxes and retirement computed using rates in effect at that 

date. 

J. Net Position

Net position is the residual difference between assets and liabilities and is comprised of unexpended 

appropriations and cumulative results of operations. Unexpended appropriations represent the amount 

of unobligated and unexpended budget authority. Unobligated balances are the amount of 

appropriations or other authority remaining after deducting the cumulative obligations from the amount 

available for obligation. The cumulative results of operations are the net results of the Authority’s 

operations since inception. 

K. Net Cost of Operations 

Earned revenues arise from the collection of state contributions and other inter-agency agreements are 

deducted from the full cost of the Authority’s major programs to arrive at net program cost. Earned 

revenues are recognized by the Authority to the extent reimbursements are payable from the public, as 

a result of costs incurred for services performed on the public’s behalf. 
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2020 and 2019 

35

L. Tax Exempt Status

As an instrumentality of the federal government, the Authority is exempt from income taxes imposed by 

any governing body whether it is a federal, state, commonwealth, local, or foreign government and 

exempt from sales and use taxes of the District of Columbia. 

M. Classified Activities 

Accounting standards require all reporting entities to disclose that accounting standards allow certain 

presentations and disclosures to be modified, if needed, to prevent the disclosure of classified 

information. 

Note 2 – Fund Balance with Treasury 

DRA’s fund balance with Treasury comes from appropriations and the reimbursable agreement with the 

DOT, DOL and EDA. Funds with the U.S. Treasury represent obligated and unobligated no-year funds 

available to finance allowable current and future expenditures. A summary of DRA’s fund balance with 

Treasury follows: 

2020 2019

Fund balance with Treasury 

General fund $ 71,300,877 $ 61,307,533

Status of fund balance with treasury

Unobligated balance

Available $ 7,660,892 $ 11,416,440

Unavailable (134,401) -

Obligated balance not yet disbursed 63,774,386 49,891,093

Total $ 71,300,877 $ 61,307,533

Note 3 – Accounts Receivable, Net 

Receivables are substantially made up of amounts due from the USDA, which is a major granting 

agency for DRA, and the Rural Community Assistance Program (RCAP). At September 30, 2020, 

$51,345 was due from USDA for subgrantee expenses recorded in the financial statements as program 

costs; $23,712 was due from USDA for administrative expenses; and $97,291 was due from a parish in 

Louisiana for a recoup of an RCAP project where the subgrantee did not complete certain requirements 

to maintain eligibility under this program. This money is subsequently being remitted to the USDA. At

September 30, 2019, $101,440 was due from USDA for subgrantee expenses recorded in the financial 

statements as program costs; $67,303 was due from USDA for administrative expenses; and $109,291 

was due from a parish in Louisiana for the project discussed above. DRA has historically collected any 

receivables due and thus has not established an allowance for uncollectible accounts. 
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2020 and 2019 

36

Note 4 – General Property and Equipment, Net 

General property and equipment balance consists of vehicles with a total cost of $255,995, accumulated 

depreciation of $179,652 and a net book value of $76,343 at September 30, 2020. Vehicles are 

depreciated over a five year estimated useful life. Depreciation expense for the fiscal year ended 

September 30, 2020 was $41,563. 

General property and equipment balance consists of vehicles with a total cost of $255,995, accumulated 

depreciation of $138,089 and a net book value of $117,906 at September 30, 2019. Vehicles are 

depreciated over a five year estimated useful life. Depreciation expense for the fiscal year ended 

September 30, 2019 was $46,781. 

Note 5 – Funds Received as Assessments from Member States 

Funds received as assessments from the various member states are maintained in DRA’s general bank

account separate from all other cash. These assessments are included with cash in the accompanying 

balance sheets. The states are required, by originating legislation, to pay 50% of the administrative costs 

of DRA. Amounts billed to the states are calculated at the beginning of each fiscal year and are based 

on the states’ 50% assessment of DRA administrative costs. The following table indicates funds on hand 

received from member states. 

2020 2019

Balance of state funds on hand, beginning of year -$ $ -

Current year billed to and received from states 1,173,913 1,096,859

Total available from states $ 1,173,913 $ 1,096,859

Balance of state funds on hand, end of year -$ $ -

Note 6 – Liabilities Covered and Not Covered by Budgetary Resources 

Liabilities not covered by budgetary resources are liabilities for which congressional action (DRA 

appropriation bill) is needed before budgetary resources can be provided. Liabilities of DRA are classified 

as liabilities covered or not covered by budgetary resources (DRA state assessments, transfers/grants 

from other agencies). They are as follows: 

Liabilities not covered by budgetary resources 2020 2019

Leave liability (state and other) $ 120,203 $ 74,239

Accounts payable (state and other) 119,255 54,018

Deferred inflows from grants (RCAP) 66,547 64,372

Deferred inflows from assessments (state and other) 125,000 125,000

Grants payable (RCAP) 140,345 190,440

Due to USDA (RCAP) 97,291 103,291

Total liabilities not covered by budgetary resources 668,641 611,360
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2020 and 2019 

37

Liabilities covered by budgetary resources 2020 2019

Intragovernmental

Employer contributions and payroll taxes payable 2,681 2,040

Liability for advances and prepayments 5,512,312 5,118,919

Total intragovernmental 5,514,993 5,120,959

With the public

Accounts payable 1,780,797 1,559,031

Accrued funded payroll and leave 9,046 7,498

Employer contributions and payroll taxes payable 452 375

Total with the public 1,790,295 1,566,904

Total liabilities covered by budgetary resources 7,305,288 6,687,863

Total liabilities $ 7,973,929 $ 7,299,223

Other liabilities are classified as current. 

Note 7 – Operating Leases

DRA leases its primary operating facilities, including substantially all furniture and fixtures used, under a 

three year operating lease arrangement with Coahoma County, Mississippi. DRA also leases space for 

the Little Rock office and a space for the Washington D.C. office from State Services Organization, Inc. 

under a six year operating lease arrangement. Future minimum lease payments at September 30, 2020 

are as follows: 

Fiscal Year Amount

2021 106,342$ 

2022 83,451

2023 50,950

2024 52,224

2025 53,529

2026 - 2027 68,668

Total 415,164$ 

The lease with Coahoma County may be terminated by DRA should DRA fail to receive funding from the 

United States, the existence of DRA be terminated, or should the governing body of DRA choose to move 

DRA’s office outside Coahoma County, Mississippi. The lease with the State Services Organization, Inc. 

may also be terminated for the above reasons. However, DRA will be liable for four months of base rent 

upon early termination of the State Services Organization, Inc. lease agreement. The DFA lease 

agreement requires termination through a 180 days’ written notice if funds are insufficient for the DRA 

to continue operations where office space is being used. Rental expense was $145,179 and $145,491 

for the years ended September 30, 2020 and 2019, respectively. 
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2020 and 2019 

38

Note 8 – Inter-Entity Costs 

DRA recognizes certain inter-entity costs for goods and services that are received from other federal 

entities at no cost or at a cost less than the full cost. Certain costs of the providing entity that are not 

fully reimbursed are recognized as imputed cost and are offset by imputed revenue. Such imputed costs 

relate to employee benefits. DRA recognizes as inter-entity costs the amount of accrued pension and 

post-retirement benefit expenses for current employees. The assets and liabilities associated with such 

benefits are the responsibility of the administering agency, Office of Personnel Management. For the 

periods ended September 30, 2020 and 2019, respectively, inter-entity costs were $7,688 and $9,034, 

respectively. 

Note 9 – Apportionment Categories of Obligations Incurred 

The direct obligations are obligations incurred against amounts apportioned under category B on the 

latest Standard Form (SF) 132. The reimbursable obligations are those incurred against the reimbursable 

agreements with Treasury. A summary of these obligations are as follows: 

2020 2019

Direct - category B grants $ 31,271,132 $ 19,434,327

Direct - category B administration 1,096,148 1,811,636

Reimbursed - category B grants 2,793,780 946,382

Reimbursed - category B administration 133,789 37,655

Total obligations $ 35,294,849 $ 22,230,000

Note 10 – Undelivered Orders at the End of the Period 

The amount of the DRA’s budgetary resources obligated for unpaid undelivered orders was $61,646,781 

and $48,241,093 as of September 30, 2020 and 2019, respectively. 

 Unpaid 

Undelivered 

Orders 

 Paid 

Underlivered 

Orders 

 Total 

Undelivered 

Orders 

Intragovernmental

2020 $ (2,023) $ - $ (2,023)

2019 $ 24,157 $ - $ 24,157

With the Public

2020 $ 61,648,804 $ 61,648,804 - $ 

2019 $ 48,217,132 $ 48,217,132 - $ 
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2020 and 2019 

39

Note 11 – Explanation of the Relationship Between Liabilities Not Covered by Budgetary Resources on 

the Balance Sheets and the Change in Components Requiring or Generating Resources in the Future 

Periods

Liabilities not covered by budgetary resources totaled $668,641 and $611,360 at September 30, 2020 

and 2019, respectively. The changes are the net increase/decrease of future funded expenses for annual 

leave and represent the difference between appropriations of annual funds for the prior and current 

annual funds. Accrued funded payroll liability is covered by budgetary resources and is included in the 

net cost of operations. The unfunded leave liability includes the expense related to the increase in annual 

leave liability for which the budgetary resources will be provided in a subsequent period. There were no 

increases/decreases in components requiring resources in future periods at September 30, 2020 and 

2019. 

Note 12 – Costs and Exchange Revenue

Intragovernmental costs are those good/services purchased from a federal entity: 

2020 2019

Program Costs

Intragovernmental costs $ 243,532 $ 222,457

Public costs 24,388,530 24,445,992

Total program costs 24,632,062 24,668,449

Less: intragovernmental earned revenue 1,010,507 1,791,220

Total net program costs $ 23,621,555 $ 22,877,229

Note 13 – Pension Plans 

Plan Description 

The Authority contributes to a defined contribution 401(k) plan covering all non-federal employees. 

Retirement expense is recorded for the amount of the Authority’s required contributions, determined 

in accordance with the terms of the plan. The plan is administered by Advanced Data Processing, Inc. 

The plan provides retirement and death benefits to plan members and their beneficiaries. Benefit 

provisions are contained in the Plan Document and were established and can be amended by action of 

the Authority’s governing body.

Additionally, the Authority’s federal employees participate in the Federal Employees’ Retirement System 

(FERS), a cost-sharing, multiple-employer defined benefit pension plan. FERS provides retirement and 

disability benefits, annual cost-of-living adjustments and death benefits to the plan members and 

beneficiaries. 

Funding Policy 

Contributions made by the Authority to the 401(k) defined contribution plan amounted to approximately 

$144,000 and $121,000 for the years ended September 30, 2020 and 2019, respectively. 
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2020 and 2019 

40

FERS covered employees, depending upon his or her hire date, are required to contribute between 0.8% 

and 4.4% of their annual covered salary. The Authority was required to contribute 11.9% of annual 

covered payroll. The Authority’s contributions to FERS for the years ended September 30, 2020 and 2019, 

were approximately $25,391 and $20,170, respectively, which equaled the required contributions for 

each year. 

Note 14 – Risk Management

The Authority is exposed to various risks of loss related to torts; theft of, damage to and destruction of 

assets; business interruption; errors and omissions; employee injuries and illnesses; natural disasters 

and employee health and accident benefits. Commercial insurance coverage is purchased for claims 

arising from such matters other than those related to errors and omissions and natural disasters. Settled 

claims have not exceeded this commercial coverage in any of the three preceding years. 

Note 15 – Explanation of Differences between the Statement of Budgetary Resources and the Budget 

of the United States Government 

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling 

Budgetary and Financial Accounting, requires an explanation of material differences between budgetary 

resources available, the status of those resources and outlays as presented in the Statement of 

Budgetary Resources to the related actual balances published in the Budget of the United States 

Government (Budget). Budgetary resources made available to DRA include current appropriations, 

unobligated appropriations and recoveries of prior year obligations. The Budget that will include the FY 

2020 actual budgetary execution information is scheduled for publication in February 2021, which will 

be available through OMB’s website (http://www.whitehouse.gov/omb). Accordingly, information 

required for such disclosure is not available at the time of publication of these financial statements. 

Balances reported in the FY 2019 SBR and the related President’s Budget reflected the following:

FY2019

 Budgetary 

Resources 

 New 

Obligations and 

Upward 

Adjustments 

 Distributed 

Offsetting 

Receipts Net Outlays 

Statement of 

Budgetary Resources $ 33,646,442 $ 22,230,000 $ - $ 20,923,958

Budget of the U.S. 

Government 34,000,000 23,000,000 21,000,000

$ (353,558) $ (770,000) -$ (76,042) $ 

The difference between the Statement of Budgetary Resources and the Budget of the United States 

Government for budgetary resources, obligations incurred and net outlays are primarily due to rounding. 

Note accrued funded payroll liability is covered by budgetary resources and is included in the net cost of 

operations, whereas unfunded annual leave liability includes the expense related to the increase in 

annual leave liability for which the budgetary resources will be provided in a subsequent period. 
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2020 and 2019 

41

Note 16 – Net Adjustments To Unobligated Balance, Brought Forward, October 1 

The Unobligated Balance Brought Forward from the prior fiscal year has been adjusted for recoveries of 

prior year paid and unpaid obligations and other changes such as canceled authority. The Adjustments 

to Unobligated Balance Brought Forward, October 1, as of September 30, 2020, and 2019, consisted of 

recoveries of prior year obligations totaling $1,000 and $1,744, respectively. 

Note 17 – Reconciliation of Net Cost of Operations (Proprietary) to Budget 

Budgetary resources obligated are obligations for personnel, goods, services, benefits, etc., made by the 

Authority in order to conduct operations or acquire assets. Other (i.e., non-budgetary) financing 

resources are also utilized by the Authority in its program (proprietary) operations. For example, 

spending authority from offsetting collections and recoveries are financial resources from the 

recoveries of prior year obligations (e.g., the completion of a contract in which not all the funds were 

used) and refunds or other collections (i.e., funds used to conduct operations that were previously 

budgeted). An imputed financing source is recognized for future federal employee benefits costs 

incurred for the Authority employees that will be funded by Office of Personnel Management (OPM). 

Changes in budgetary resources obligated for goods, services and benefits ordered but not yet provided 

represent the difference between the beginning and ending balances of undelivered orders (i.e., goods 

and services received during the year based on obligations incurred the prior year represent a cost of 

operations not funded from budgetary resources). Resources that finance the acquisition of assets are 

budgetary resources used to finance assets and net cost of operations (e.g., increases in accounts 

receivables or capitalized assets). Financing sources yet to be provided represent financing that will be 

provided in future periods for future costs that are recognized in determining the net cost of operations 

for the present period. Finally, components not requiring or generating resources are costs included in 

the net cost of operations that do not require resources (e.g., depreciation and amortized expenses of 

assets previously capitalized). 

A reconciliation between budgetary resources obligated and net cost of operations (i.e., providing an 

explanation between budgetary and proprietary accounting) is as follows: 
Delta Regional Authority 

Notes to Financial Statements 

September 30, 2020 and 2019 

42

2020 2019

Budgetary resources obligated $ 35,293,105 $ 22,230,000 

Spending authority from recoveries and offsetting 

collections (1,538,300) (2,787,854)

Imputed financing from costs absorbed by others 7,688 9,034 

Disbursements of funds provided by member states and 

others 1,530,745 1,209,116 

Disbursements of RCAP funds 1,205,272 935,228 

Change in budgetary resources obligated for goods, 

services and benefits ordered but not yet provided (12,876,955) 1,281,705 

Resources that finance the acquisition of assets - - 

Net cost of operations $ 23,621,555 $ 22,877,229 

Note 18 – Subsequent Events

DRA has evaluated subsequent events occurring after the balance sheet date and through the date of 

November 15, 2020, the date the financial statements were available for release. Based upon this 

evaluation, DRA has determined that no subsequent events have occurred which require disclosure in 

the financial statements. 
Federal 

State and 

Other RCAP Total 

Assets

Intragovernmental

Fund balance with Treasury $ 71,300,877 $ - $ - $ 71,300,877

Total intragovernmental 71,300,877 - - 71,300,877

Cash - 3,859,708 124,847 3,984,555

Accounts receivable, net - - 172,348 172,348

General property and equipment, net - 76,343 - 76,343

Total assets $ 71,300,877 $ 3,936,051 $ 297,195 $ 75,534,123

Liabilities

Intragovernmental

Employer contributions and payroll taxes 

payable $ 2,681 $ - $ - $ 2,681

Liability for advances and prepayments 5,512,312 - - 5,512,312

Total intragovernmental 5,514,993 - - 5,514,993

Interfund transfers 334,628 (358,340) 23,712 -

Accounts payable 1,780,797 119,255 - 1,900,052

Grants and other payables 452 125,000 304,183 429,635

Accrued funded payroll and leave 9,046 120,203 - 129,249

Total liabilities 7,639,916 6,118 327,895 7,973,929

Net position 

Unexpended appropriations - all other funds 

(consolidated totals) 63,660,961 3,929,933 (30,700) 67,560,194

Cumulative results of operations - all other 

funds (consolidated totals) - - - -

Total net position 63,660,961 3,929,933 (30,700) 67,560,194

Total liabilities and net position $ 71,300,877 $ 3,936,051 $ 297,195 $ 75,534,123

Delta Regional Authority

Combining Balance Sheet

September 30, 2020

43
Federal 

State and 

Other RCAP Total 

Assets

Intragovernmental

Fund balance with Treasury $ 61,307,533 $ - $ - $ 61,307,533

Total intragovernmental 61,307,533 - - 61,307,533

Cash - 3,414,950 152,845 3,567,795

Accounts receivable, net - - 278,034 278,034

General property and equipment, net - 117,906 - 117,906

Total assets $ 61,307,533 $ 3,532,856 $ 430,879 $ 65,271,268

Liabilities

Intragovernmental

Employer contributions and payroll taxes 

payable $ 2,040 $ - $ - $ 2,040

Liability for advances and prepayments 5,118,919 - - 5,118,919

Total intragovernmental 5,120,959 - - 5,120,959

Interfund transfers 80,859 (149,287) 68,428 -

Accounts payable 1,559,031 54,018 - 1,613,049

Grants and other payables 375 125,000 358,103 483,478

Accrued funded payroll and leave 7,498 74,239 - 81,737

Total liabilities 6,768,722 103,970 426,531 7,299,223

Net position 

Unexpended appropriations - all other funds 

(consolidated totals) 54,538,811 3,428,886 4,348 57,972,045

Cumulative results of operations - all other 

funds (consolidated totals) - - - -

Total net position 54,538,811 3,428,886 4,348 57,972,045

Total liabilities and net position $ 61,307,533 $ 3,532,856 $ 430,879 $ 65,271,268

Delta Regional Authority

Combining Balance Sheet

September 30, 2019

44
Delta Regional Authority

Combining Statement of Net Cost

Year Ended September 30, 2020

Federal 

State and 

Other RCAP Total 

Program cost

Council of Inspectors General on 

Integrity and Efficiency

Gross costs $ 21,896,045 $ 1,530,745 $ 1,205,272 $ 24,632,062

Less: earned revenue (1,010,507) - - (1,010,507)

Total net program cost 20,885,538 1,530,745 1,205,272 23,621,555

Net cost of operations $ 20,885,538 $ 1,530,745 $ 1,205,272 $ 23,621,555

45
Delta Regional Authority

Combining Statement of Net Cost

Year Ended September 30, 2019

Federal 

State and 

Other RCAP Total 

Program cost

Council of Inspectors General on 

Integrity and Efficiency

Gross costs $ 22,524,105 $ 1,209,116 $ 935,228 $ 24,668,449

Less: earned revenue (1,791,220) - - (1,791,220)

Total net program cost 20,732,885 1,209,116 935,228 22,877,229

Net cost of operations $ 20,732,885 $ 1,209,116 $ 935,228 $ 22,877,229

46
Federal

State and 

Other RCAP Total 

Unexpended appropriations

Beginning balance $ 54,538,811 $ 3,428,886 $ 4,348 $ 57,972,045 

Budgetary financing sources

Appropriations received 30,000,000 - - 30,000,000 

Appropriations used (20,877,850) - - (20,877,850)

Other financing sources (uses)

Cost of operations absorbed by 

member states and others - 2,031,792 - 2,031,792 

Cost of operations absorbed by RCAP - - 1,170,224 1,170,224 

Disbursements of funds provided by 

member states and others - (1,530,745) - (1,530,745)

Disbursements of RCAP funds - - (1,205,272) (1,205,272)

 - 

Total financings sources (uses) 9,122,150 501,047 (35,048) 9,588,149 

Total unexpended appropriations $ 63,660,961 $ 3,929,933 $ (30,700) $ 67,560,194 

Cumulative results of operations

Beginning balance $ - $ - $ - $ - 

Budgetary financing sources

Appropriations used 20,877,850 - - 20,877,850 

Other financing sources

Imputed financing from costs absorbed 

by others 7,688 - - 7,688 

Disbursements of RCAP funds - - 1,205,272 1,205,272 

Disbursements of funds provided by 

member states and others - 1,530,745 - 1,530,745 

Total financing sources 20,885,538 1,530,745 1,205,272 23,621,555 

Net cost of operations 20,885,538 1,530,745 1,205,272 23,621,555 

Net change - - - - 

Total cumulative results of operations - - - -

Net position $ 63,660,961 $ 3,929,933 $ (30,700) $ 67,560,194 

Year Ended September 30, 2020

Delta Regional Authority

Combining Statement of Changes in Net Position

47
Federal

State and 

Other RCAP Total 

Unexpended appropriations

Beginning balance $ 50,262,662 $ 2,547,135 $ (2,661) $ 52,807,136 

Budgetary financing sources

Appropriations received 25,000,000 - - 25,000,000 

Appropriations used (20,723,851) - - (20,723,851)

Other financing sources (uses)

Cost of operations absorbed by 

member states and others - 2,090,867 - 2,090,867 

Cost of operations absorbed by RCAP - - 942,237 942,237 

Disbursements of funds provided by 

member states and others - (1,209,116) - (1,209,116)

Disbursements of RCAP funds - - (935,228) (935,228)

Total financings sources (uses) 4,276,149 881,751 7,009 5,164,909 

Total unexpended appropriations $ 54,538,811 $ 3,428,886 $ 4,348 $ 57,972,045 

Cumulative results of operations

Beginning balance $ - $ - $ - $ - 

Budgetary financing sources

Appropriations used 20,723,851 - - 20,723,851 

Other financing sources

Imputed financing from costs absorbed 

by others 9,034 - - 9,034 

Disbursements of RCAP funds - - 935,228 935,228 

Disbursements of funds provided by 

member states and others - 1,209,116 - 1,209,116 

Total financing sources 20,732,885 1,209,116 935,228 22,877,229 

Net cost of operations 20,732,885 1,209,116 935,228 22,877,229 

Net change - - - - 

Total cumulative results of operations - - - - 

Net position $ 54,538,811 $ 3,428,886 $ 4,348 $ 57,972,045 

Delta Regional Authority

Combining Statement of Changes in Net Position

Year Ended September 30, 2019

48
Delta Regional Authority

Year Ended September 30, 2020

Federal 

State and 

Other RCAP Total 

Resources used to finance activities

Budgetary resources obligated

Obligations incurred $ 35,294,849 $ - $ - $ 35,294,849

Less: spending authority from offsetting collections and 

recoveries 1,537,300 - - 1,537,300

Obligations net of offsetting collections and recoveries 33,757,549 - - 33,757,549

Net obligations 33,757,549 - - 33,757,549

Other resources

Imputed financing from costs absorbed by others 7,688 - - 7,688

Disbursements of funds provided by member states and 

others - 1,530,745 - 1,530,745

Disbursements of RCAP funds - - 1,205,272 1,205,272

Net other resources used to finance activities 7,688 1,530,745 1,205,272 2,743,705

Total resources used to finance activities 33,765,237 1,530,745 1,205,272 36,501,254

Resources used to finance items not part of the net cost of 

operations

Change in budgetary resources obligated for goods, services 

and benefits ordered but not yet provided 12,879,699 - - 12,879,699

Total resources used to finance items not part of the net 

cost of operations 12,879,699 - - 12,879,699

Total resources used to finance net cost of operations 20,885,538 1,530,745 1,205,272 23,621,555

Components of the net cost of operations that will require or 

generate resources in the future periods

Increase in annual leave liability - - - -

Total components of the net cost of operations that will 

require or generate resources in the future periods - - - -

Total resources used to finance the net cost of 

operations $ 20,885,538 $ 1,530,745 $ 1,205,272 $ 23,621,555

Combining Reconciliation of Net Cost of Operations (Proprietary) to Budget

49
Delta Regional Authority

Combining Reconciliation of Net Cost of Operations (Proprietary) to Budget

Year Ended September 30, 2019

Federal 

State and 

Other RCAP Total 

Resources used to finance activities

Budgetary resources obligated

Obligations incurred $ 22,230,000 $ - $ - $ 22,230,000

Less: spending authority from offsetting collections and 

recoveries 2,787,854 - - 2,787,854

Obligations net of offsetting collections and recoveries 19,442,146 - - 19,442,146

Net obligations 19,442,146 - - 19,442,146

Other resources

Imputed financing from costs absorbed by others 9,034 - - 9,034

Disbursements of funds provided by member states and 

others - 1,209,116 - 1,209,116

Disbursements of RCAP funds - - 935,228 935,228

Net other resources used to finance activities 9,034 1,209,116 935,228 2,153,378

Total resources used to finance activities 19,451,180 1,209,116 935,228 21,595,524

Resources used to finance items not part of the net cost of 

operations

Change in budgetary resources obligated for goods, services 

and benefits ordered but not yet provided (1,281,705) - - (1,281,705)

Total resources used to finance items not part of the net 

cost of operations (1,281,705) - - (1,281,705)

Total resources used to finance net cost of operations 20,732,885 1,209,116 935,228 22,877,229

Components of the net cost of operations that will require or 

generate resources in the future periods

Increase in annual leave liability - - - -

Total components of the net cost of operations that will 

require or generate resources in the future periods - - - -

Total resources used to finance the net cost of 

operations $ 20,732,885 $ 1,209,116 $ 935,228 $ 22,877,229

50
Federal State and Other RCAP Total

Grants, subsidies and contributions $ 19,367,857 $ - $ 1,205,272 $ 20,573,129

Consulting and other services 535,072 654,531 - 1,189,603

Employee benefits 182,524 180,492 - 363,016

Personnel services 541,963 490,292 - 1,032,255

Travel and transportation of persons 70,107 54,829 - 124,936

Rent, communications and utilities 126,922 40,533 - 167,455

Supplies and materials 41,918 29,978 - 71,896

Printing and reproduction 10,173 11,453 - 21,626

Office expense 9,002 68,637 - 77,639

Total expenditures $ 20,885,538 $ 1,530,745 $ 1,205,272 $ 23,621,555

Year Ended September 30, 2020

Delta Regional Authority

Schedule of Expenditures

Paid From

51
DRA 

Obligated Total Funds

Funding 

%

DRA 

Obligated Total Funds

Funding 

%

DRA 

Obligated Total Funds

Funding 

%

Basic public infrastructure $ 7,981,735 $ 100,045,036 50.7% $ 6,537,339 $ 32,502,401 49.7% $ 8,533,368 $ 41,447,325 58.5%

Transportation infrastructure 2,442,861 98,550,612 15.5% 2,695,060 52,202,733 20.5% 2,030,162 18,630,577 13.9%

Business development 2,644,661 5,896,998 16.8% 1,552,369 2,890,177 11.8% 1,755,889 8,351,196 12.0%

Work development 2,550,088 6,664,388 16.2% 1,860,661 9,846,747 14.1% 1,921,076 19,911,775 13.2%

Other 131,000 131,000 0.8% 517,000 1,575,625 3.9% 350,000 450,000 2.4%

$ 15,750,345 $ 211,288,034 100.0% $ 13,162,429 $ 99,017,683 100.0% $ 14,590,495 $ 88,790,873 100.0%

2018

DRA 

Obligated

State 

Allocation State %

DRA 

Obligated

State 

Allocation State %

DRA 

Obligated

State 

Allocation State %

State allocations

Alabama $ 1,544,496 $ 1,454,239 10.3% $ 1,627,615 $ 1,280,016 10.3% $ 1,529,491 $ 1,242,514 10.3%

Arkansas 2,816,649 2,068,162 14.6% 2,266,423 1,825,802 14.7% 2,040,625 1,718,707 14.2%

Illinois 1,228,976 1,185,209 8.4% 1,057,353 997,776 8.0% 1,187,302 1,025,970 8.5%

Kentucky 1,358,137 1,316,270 9.3% 1,270,726 1,163,635 9.4% 1,486,395 1,130,172 9.4%

Louisiana 3,349,352 2,805,549 19.8% 2,565,003 2,465,089 19.9% 2,655,528 2,439,398 20.2%

Mississippi 671,389 2,183,838 15.4% 1,187,201 1,930,012 15.6% 2,712,653 1,869,800 15.5%

Missouri 2,684,961 1,611,112 11.4% 2,033,641 1,419,708 11.5% 1,438,501 1,377,358 11.4%

Tennessee 2,096,385 1,545,621 10.9% 1,154,467 1,313,069 10.6% 1,540,000 1,275,656 10.6%

$ 15,750,345 $ 14,170,000 100.0% $ 13,162,429 $ 12,395,107 100.0% $ 14,590,495 $ 12,079,575 100.0%

*Grant obligation process for 2020 not completed as of audit report date. 

Obligations may be more than allocated due to deobligation and reobligation of prior years' unused funds. 

2020

2019

2019

2018

Delta Regional Authority

Schedule of Grants Made*

Years Ended September 30, 2020, 2019 and 2018

2020

52
DRA Obligated Total Funds

Funding 

%

DRA 

Obligated Total Funds

Funding 

%

DRA 

Obligated Total Funds

Funding 

%

Basic public infrastructure $ 8,053,311 $ 34,831,060 65.8% $ 4,883,584 $ 22,349,683 84.5% $ 4,480,890 $ 30,383,560 68.1%

Transportation infrastructure 4,047,383 273,456,007 33.1% 895,900 1,410,900 15.5% 2,100,000 2,725,000 31.9%

Business development - - 0.0% - - 0.0% - 0 0.0%

Work development - - 0.0% - - 0.0% - - 0.0%

Other 136,405 167,405 1.1% - - 0.0% - - 0.0%

$ 12,237,099 $ 308,454,472 100.0% $ 5,779,484 $ 23,760,583 100.0% $ 6,580,890 $ 33,108,560 100.0%

DRA Obligated State Allocation State %

DRA 

Obligated

State 

Allocation State %

DRA 

Obligated

State 

Allocation State %

State allocations

Alabama $ 732,249 $ 732,249 6.0% $ 707,390 $ 707,390 12.2% $ - $ - 0.0%

Arkansas 2,509,000 2,509,000 20.5% 445,900 445,900 7.7% 1,030,684 1,030,684 15.7%

Illinois 457,253 457,253 3.7% 340,621 340,621 5.9% 305,706 305,706 4.6%

Kentucky 3,397,133 3,397,133 27.8% 1,195,102 1,195,102 20.7% 1,174,500 1,174,500 17.8%

Louisiana 1,324,739 1,324,739 10.8% 1,608,884 1,608,884 27.8% 1,400,000 1,400,000 21.3%

Mississippi 2,297,725 2,297,725 18.8% 1,481,587 1,481,587 25.6% 820,000 820,000 12.5%

Missouri - - 0.0% - - 0.0% - - 0.0%

Tennessee 1,519,000 1,519,000 12.4% - - 0.0% 1,850,000 1,850,000 28.1%

$ 12,237,099 $ 12,237,099 100.0% $ 5,779,484 $ 5,779,484 100.0% $ 6,580,890 $ 6,580,890 100.0%

*Grant obligation process for 2020 not completed as of audit report date. 

2018

2020 2019 2018

Community Infrastructure Fund (CIF)

Delta Regional Authority

Schedule of Grants Made*

Years Ended September 30, 2020, 2019 and 2018

2020 2019

53